Here’s a quick forex of my short EUR/USD position, closed at my trailing stop ahead of the close of last week’s trade for a small profit.
Original Trade Idea: Forex Trade: Getting Back in USD Long
It wasn’t more than a few 4 hour bars after I adjusted my stop to 1.0775 that it was triggered, taking me out of the trade for a profit and highlighting how volatile the price action was after the FOMC monetary policy announcement last week.
Total: +225 pips/ +0.57% gain
Overall, a textbook trade with a little bit of luck thrown in since I didn’t think I’d get a retracement that high, and even though I’m out of the trade, I’m still bearish on on EUR/USD because of the monetary policy outlook divergence between the European Central Bank and the Federal Reserve. But with the main central bank events behind us for a while (mainly the start of ECB QE), I think a bulk of the downtrend may be done for now and it may be time for forex traders to take a break. So, I’ll look to trade EUR/USD slightly differently, at least with my entry technique to hop back into the trade; maybe scale in from here up to higher levels. Stay tuned for that new trade idea coming this week and thanks for checking out my blog!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.